Pegatron blames slumping Apple iPad mini sales for lower revenue

Pegatron blames slumping Apple iPad mini sales for lower revenue
Citing falling demand for the Apple iPad mini, Pegatron Corporation said it expects to report a 25% to 30% drop in second quarter consumer electronics revenue from the first quarter. This makes it the largest sequential decline in revenue over the last 6 quarters. The company had reported a 37% decline in revenue from the the third quarter of 2011 to the fourth quarter of that year.

Pegatron CEO Jason Chang said that the fall off in revenue attributed to the iPad mini "is more on demand, while price has been stable." Chang added that the problem is "Not just tablets, also e-books and games consoles, almost every item is moving in a negative direction." Amid competition from Android tablets, all of Apple's slabs have been experiencing a sharp drop in market share. According to the latest data from IDC, the Apple iPad had a 39.6% share of the global tablet market in the first quarter, down from a 58.1% share in the same quarter of 2012. At the same time, Samsung saw its share of the worldwide tablet market increase from 11.3% to 17.9%.

Pegatron's fortunes in the consumer electronic business are heavily dependent on sales of the Apple iPad mini, with the 7.9 inch slate accounting for more than half of the company's revenue in the sector. The Apple iPhone 4S accounts for a majority of sales in the company's communications division. Pegatron isn't the only company in the business experiencing a drop in revenue. Hon Hai, the largest electronics manufacturer in the world, and the company that assembles the Apple iPhone 5 and other Apple products, last month reported a 19% drop in revenue. That was the largest decline for the company's top-line in 13 years.

source: Bloomberg

Related phones

iPad mini
  • Display 7.9" 1024 x 768 pixels
  • Camera 5 MP / 1.2 MP front
  • Processor Apple A5, Dual-core, 1000 MHz
  • Storage 64 GB
  • Battery 4440 mAh



1. Aeires unregistered

Apple should have released the first version with the Retina. Probably didn't because they'd have less to offer in the second iteration.

3. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Doesn't work that way. First release is lowest spec. Then v2 improves a little bit. V3 is a slight improvement over v2. And, and, and. Got to keep the iFans paying their hard-earned (remember the kid who sold a kidney for an iPad?) $ for the latest iToy. Only Q is whether the mini2 has an improved set of other specs (CPU, GPU, battery life, etc) in addition to the display.

7. bucky

Posts: 3794; Member since: Sep 30, 2009

Same can be said about android stuff too. Only difference is apple at least does it once a year instead of every 2 weeks.

6. osmaankhaan unregistered

So the blame game has already started in apple too!!

2. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Everyone is waiting for the new and improved mini. The mini1 was basically a shrunken iPad2 with LTE. Time for Apple to release a new and improved mini. The market is voting with their wallet.

4. HDShatter

Posts: 1021; Member since: Jan 17, 2013

Nexus 7 update soon will be much more interesting.

8. selena1000

Posts: 85; Member since: Mar 14, 2013

i have used a nexus 7 and let me tell u something it sux compared to the mini

9. Fallout09

Posts: 421; Member since: Oct 17, 2011

Really? Please explain your reasoning?

5. Hemlocke unregistered

Not exactly. Cirrus Logic and a few others blamed a slowdown in Apple component sales for their slow quarters, last quarter, and Apple ended up posting very solid numbers. The iPad Mini sold more last quarter than Samsung and ASUS tablets, combined, sold in the last 12 months, just for comparison's sake. It's easy for them to point the finger at Apple, but as Cook said, they source from a lot of suppliers.

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